Impact of US H-1B visa changes .... a big setback for Indian IT companies

Indian IT companies are facing a setback in the US market as H-1B visa approvals for new jobs dropped sharply this year. The H-1B program, which allows American companies to hire skilled foreign professionals, recorded its lowest approval numbers for Indian firms in nearly a decade.

According to new analysis by the National Foundation for American Policy, the top seven Indian IT companies received only 4,573 H-1B approvals for fiscal year 2025. This represents a 70 percent decline compared to 2015 and a 37 percent drop from 2024.

For the first time in history, American tech giants such as Amazon, Meta, Microsoft, and Google took the top four spots in new H-1B approvals. Only three Indian IT firms found a place in the top 25 sponsors.

TCS was the only Indian company that showed some resilience. It ranked among the top five companies with the highest new H-1B approvals, securing 846 approvals. The company also recorded a low rejection rate of 2 percent for new visas. However, denial rates for extension petitions increased to 7 percent.

Immigration experts note that US companies are now more focused on retaining existing employees rather than bringing in new talent from abroad. The H-1B program is increasingly serving as a temporary holding lane for professionals waiting for green cards.

Labor certifications for the “Software Engineer” category have also fallen significantly, dropping from 40,378 in 2022 to 23,922 in 2025. USCIS data further indicates that H-1B workers in the US earn an average salary of around USD 135,000, countering the narrative that they are low-cost labor.

Overall, changes in US immigration policies since the Trump era are pushing Indian IT firms to rethink their strategies, while American tech companies continue to strengthen their influence.